How would managers best interpret the outcome

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Problem 1: At the end of April, the manufacturing overhead clearing account for Owens Company had a debit balance of $9,100, which they have deemed not to be material. How would managers best interpret this outcome and how should they address it?

A. The company underapplied manufacturing overhead and should credit their cost of goods sold account for the given amount.

B. The company overapplied manufacturing overhead and should debit their cost of goods sold account for the given amount.

C. The company underapplied manufacturing overhead and should debit their cost of goods sold account for the given amount.

D. The company overapplied manufacturing overhead and should credit their cost of goods sold account for the given amount.

E. The amount it too high and the company should distribute the $9,100 across cost of goods sold, finished goods, and work-in-process accounts to clear the manufacturing overhead.

Reference no: EM132999227

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